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Laval produces lamps and home lighting fixtures. Its most popular product is a brushed aluminum desk lamp. This lamp is made from components shaped
Laval produces lamps and home lighting fixtures. Its most popular product is a brushed aluminum desk lamp. This lamp is made from components shaped in the fabricating department and assembled in the assembly department. Information related to the 27,000 desk lamps produced annually follows. Direct materials Direct labor Fabricating department (6,000 DLH Assembly department (16,200 DLH Machine hours Fabricating department Assembly department $275,000 $24 per DLH) $144,000 $21 per DLH) $340,200 15,000 MH 20,950 MH Expected overhead cost and related data for the two production departments follow. Fabricating 130,000 DLH Direct labor hours Assembly 370,000 DLH Machine hours 159,000 MH Overhead cost $330,000 133,000 MH $415,000
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